Lennar Corporation Reports Third Quarter 2025 Results

Lennar Corporation, a leading homebuilder in the United States, has released its financial results for the third quarter of 2025. The report highlights the company's performance amidst challenging market conditions and provides insights into its strategic initiatives and future outlook.

Financial Highlights

For the third quarter of 2025, Lennar reported net earnings of $591 million, translating to earnings per diluted share (EPS) of $2.29. Excluding mark-to-market gains on technology investments, the net earnings were $516 million, or $2.00 per diluted share. This is a significant decrease compared to the third quarter of 2024, where net earnings were $1.2 billion, or $4.26 per diluted share.

Total revenues for the quarter were $8.8 billion, down from $9.4 billion in the same period last year. The gross margin on home sales decreased to 17.5% from 22.5% in the previous year, reflecting lower revenue per square foot and higher land costs.

Business and Operational Highlights

Lennar delivered 21,584 homes during the quarter, consistent with the prior year. New orders increased by 12% to 23,004 homes, and the company ended the quarter with a backlog of 16,953 homes valued at $6.6 billion. The average sales price of homes delivered was $383,000, down from $422,000 in the third quarter of 2024.

The Financial Services segment reported operating earnings of $178 million, up from $144 million in the previous year, primarily due to higher profit per locked loan in the mortgage business. However, the Multifamily segment experienced an operating loss of $16 million, compared to operating earnings of $79 million in the third quarter of 2024.

Strategic Initiatives and Corporate Developments

During the third quarter, Lennar repurchased 4.1 million shares of its common stock for $507 million at an average share price of $122.97. The company also completed its acquisition of Rausch Coleman Homes earlier in the year, which contributed to the overall performance.

Management's Perspective

Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, commented on the results, stating, "Our third quarter results reflect both the continued pressures of today’s housing market and the consistency of Lennar’s operating strategy. This quarter, we delivered 21,584 homes and recorded 23,004 new orders. Achieving these results required additional incentives, resulting in a reduced average sales price of $383,000, and our gross margin drifted down to 17.5%, while our SG&A expenses came in at 8.2%, reflecting the soft market conditions."

Jon Jaffe, Co-Chief Executive Officer and President, added, "During the quarter, we achieved a starts pace and sales pace of 4.4 homes and 4.7 homes per community per month, respectively, as we used targeted incentives, including mortgage rate buydowns, to sustain momentum. Additionally, we carefully managed our inventory levels, ending the quarter with fewer than two completed, unsold homes per active community, which is within our historical range."

Future Outlook

Looking ahead, Lennar expects new orders of 20,000 to 21,000 homes and deliveries of 22,000 to 23,000 homes in the fourth quarter of 2025. The company anticipates a gross margin of approximately 17.5%, consistent with the third quarter, depending on market conditions. Management remains optimistic about the long-term need for housing and is committed to meeting affordability, sustaining even-flow production, and lowering costs through efficiency and scale.

SEC Filing: LENNAR CORP /NEW/ [ LEN ] - 8-K - Sep. 18, 2025